RBI strengthens Framework on Unauthorised Electronic Banking Transactions (See 'Corp Brief') Govt expands DEH Initiative to Boost District-Level Export Competitiveness (See 'Corp Brief') IBC - Issues of fraud or existence of debt must be decided by insolvency tribunal, not civil court: HC (See 'Legal Desk') DPIIT signs MoU with leading AC company to strengthen manufacturing ecosystem (See 'Corp Brief') Two-Day Eastern Region Review Meeting of CGCA concludes (See 'Corp Brief') IPR - Minor variations in product that do not alter essential mode of operation of patented invention are considered mere engineering variations: HC (See 'Legal Desk') Paatil calls for 'Jan Bhagidari' to strengthen Water Conservation Efforts (See 'Corp Brief') IICA successfully concludes 4th Batch of Directors' Certification in Corporate Governance (See 'Corp Brief') Ministry of MSME assisting entrepreneurs in setting up of new micro enterprises (See 'Corp Brief') COFEPOSA - Dispute over rent or mesne profits for immovable property leased for commercial purposes is 'commercial dispute': HC (See 'Legal Desk') Amendments to Banking Regulation Act and MSCS Act, 2002 enhance oversight & accountability (See 'Corp Brief') MY Bharat mobilises Youth across 763 Districts for Shaheed Diwas Padyatra (See 'Corp Brief') PMLA - Even property acquired prior to commission of crime can be provisionally attached finding it falling in definition of 'proceeds of crime': SAFEMA (See 'Legal Desk') Ministry of Mines to launch 7th Tranche of Auction of Critical and Strategic Minerals (See 'Corp Brief') Jal Mahotsav 2026 gives momentum to 'Jal Sanchay se Jan Bhagidari' (See 'Corp Brief') Ministry of Mines to organise National DMF Summit 2026 (See 'Corp Brief') PMLA - High Court of Delhi lacked territorial jurisdiction to hear appeal filed against Appellant based in Kolkata; GST registration at Delhi, occasional hearings before Delhi Bench of NCLT do not establish that appellant ordinarily operates in Delhi: HC (See 'Legal Desk') Union Minister chairs 90th Meeting of Standing Committee of National Board for Wildlife (See 'Corp Brief') India achieves 1 billion Tonne Coal Production Milestone Again (See 'Corp Brief') Capital Market - SEBI's regulations are framed to protect rights of stakeholders in securities market, and violation of its regulations being matter of public law, can't be condoned by private resolution of shareholders: SC (See 'Legal Desk') PDUNASS conducts DoPT-Sponsored Training Programme (See 'Corp Brief') Govt introduces Credit Guarantee Scheme for Microfinance Institutions-2.0 (See 'Corp Brief') Supreme Court Clears Path For Single Insolvency Proceedings Against Linked Group Companies (See CORP EINSICHT)

Print

RBI strengthens Framework on Unauthorised Electronic Banking Transactions

Published: Mar 25, 2026

By TIOLCorplaws News Service

NEW DELHI, MAR 25, 2026: THE Reserve Bank of India (RBI) had issued the extant instructions on limiting liability of customers in unauthorised electronic banking transactions in 2017. However, in view of the rapid adoption of technology in the banking sector and payments systems, RBI reviewed its existing instructions. The revised instructions, including a compensation mechanism in case of small value fraudulent electronic banking transactions, have been issued for public / stakeholders' consultation on March 06, 2026. The same is available at: https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=62340

Indian Digital Payment Intelligence Corporation (IDPIC) has been incorporated as section 8 company, under the Companies Act, 2013 on 16/10/2025. Its primary mandate is to detect, prevent, and analyse fraud in India's rapidly expanding digital payments ecosystem in real time by leveraging cutting-edge technologies, including Artificial Intelligence (AI), Machine Learning (ML), and Big Data Analytics.

The Government has been constantly engaging with the Reserve Bank of India (RBI) and other concerned Regulators/ stakeholders. To curb the misuse of mule accounts for diversion and layering of funds in cyber frauds across the country, RBI has rolled out "MuleHunter.AI" an artificial intelligence/ machine learning-based solution for mule account detection. The solution is currently live in 26 banks and is being scaled up further. RBI has also issued advisories delineating specific actions to be taken by the banks in mitigating the misuse of banking channel through robust systems and controls for the prevention and detection of cyber enabled frauds & suspected money mules.

Further, the banks have been advised to ensure deployment and adoption of robust software for real-time transaction monitoring and use of AI / ML tools in detecting suspicious and fraudulent transaction patterns as well as use of network analytics in identifying mule networks.

Several initiatives have been taken to disseminate cybersecurity awareness among citizens, including senior citizens. These, inter alia, include:

i. The Centre for Financial Literacy (CFL) project has been initiated by RBI since 2017 with an objective to adopt community-led innovative and participatory approaches to financial literacy. A total of 2,421 CFLs have been set up across the country, as on March 31, 2025, with one CFL covering three blocks;

ii. Financial Literacy Week (FLW) has been conducted every year since 2016 to propagate the message of financial education among citizens across the country;

iii. RBI's multi-media and multilingual public awareness campaign, titled "RBI Kehta Hai" promotes financial literacy to create awareness among citizens on safe banking practices.

iv. Securities and Exchange Board of India (SEBI) runs the "SEBI vs SCAM" Campaign, which generates an ongoing fraud awareness campaign via TV, print, radio, and social media in partnership with Market Infrastructure Institutions (MIIs). SEBI has also launched the Saarthi Mobile App, offering educational resources and investment information to protect citizens.

This information was given by the Minister of State in the Ministry of Finance Shri Pankaj Chaudhary in Rajya Sabha yesterday.

TIOL CORP SEARCH

TIOL GROUP WEBSITES

taxindiaonline
taxindiainternational
tioltube
TKF
TIOLawards
A TIOL Website. Copyright © 2025 TIOLcorplaws.com All rights reserved.